During 2011, the following selected cash transactions occurred.
April 1 Purchased land for $2,130,000.
May 1 Sold equipment that cost $780,000 when purchased on January 1, 2007.The
equipment was sold for $450,000.
June 1 Sold land purchased on June 1, 2001 for $1,500,000.The land cost $400,000.
July 1 Purchased equipment for $2,000,000.
Dec. 31 Retired equipment that cost $500,000 when purchased on December 31, 2001. No salvage
value was received.

Instructions

(a) Journalize the above transactions.The company uses straight-line depreciation for buildings
and equipment.The buildings are estimated to have a 50-year life and no salvage value.The
equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation
on assets disposed of at the time of sale or retirement.